Political rhetoric often further complicates the picture. Shedden pointed to Trump’s recent mention in the State of the Union about doing away with federal taxation of Social Security benefits. While this sounds appealing to retirees on the surface, she warned it would be a catastrophic mistake. The taxes collected on these benefits go directly back into the trust funds, she explained, and eliminating them would “just further increase the time that we’re going to need to cut benefits.” Furthermore, she noted the tax advantages in such bills often exacerbate wealth inequality, primarily benefiting the very top earners while offering little to the lower and middle classes.
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